A COMPARATIVE STUDY OF BANK CHARGES OF

STATE BANK OF INDIA AND OTHER BANKS WITH

SPECIAL REFRENCES TO CHERUPUZHA
PANJAYATH.
A PROJECT REPORT

Submitted by

KRISHNA K
REG NO.PG18BR0023

Under the supervision of

Mr. SUBIN V.S
Assistant Professor in commerce

In partial fulfillment of the requirements for the award of

Bachelor Degree Programme in

COMMERCE

Of
Kannur university

2020-2021
 GOVT. COLLEGE PERINGOME

Department Of Commerce

BONAFIDE CERTIFICATE

Certified that this project report of “A COMPARITIVE STUDY OF BANK

CHARGES OF STATE BANK OF INDIA AND OTHER BANKS WITH
SPECIAL REFERENCE TO CHERUPUZHA PANJAYATH” is the bonafide
work of KRISHNA K (PG18BR0023) who carried out the project work under my
supervision.

DR. LINI DARLIE Mr. SUBIN V.S

HOD & Assistant professor Assistant professor

Department of Commerce Department of commerce

Govt. college Peringome Govt. college peringome

Kannur Kannur
 DECLARATION

I, KRISHNA K, hereby declare that the project work entitiled “A COMPARATIVE

STUDY ON BANK CHARGES OF STATE BANK OF INDIA AND OTHER

BANKS WITH A SPECIAL REFERENCES TO CHERUPUZHA
PANJAYATH” has been prepared by me and submitted to kannur university in partial
fulfillment of requirements for the award of Bachelor Of Commerce Degree programme, is a
record of original work done by me under the supervision of MR.SUBIN V.S Assistant
Professor, Department of Commerce Govt.College Peringome.

I also declare that this project work has not been submitted by me fully or partially for the award
of any Degree, Diploma, Title or Recognition before any authority.

PLACE: Name: KRISHNA K

DATE: Reg No: PG18BR0023

 ACKNOWLEDGEMENT

I have immense pleasure and privilege in submitting my project report entitled A

COMPARATIVE STUDY ON BANK CHARGES OF STATE BANK OF

INDIA AND OTHER BANK WITH SPECIAL REFERENCES TO
CHERUPUZHA PANJAYATH

I would like to thank DR.P.P .JAYAKUMAR (principal) Govt. College

Peringome, who granted me the permission to do my project work.

It’s my privilege to thank MR.SUBIN V. S (assistant professor in commerce) Govt.

College Peringome for his valuable suggestion and advice while drafting this project
work.

I feel deep sense of gratitude to my parents for their love support and
encouragement and for being a constant source of inspirations in all my activities

PLACE: KRISHNA K

DATE: PG18BR0023
CHAPTERS TITLE PAGE NUMBER

LIST OF TABLES

LIST OF FIGURES

I INTRODUCTION 1-3

II THEORITICAL FRAMEWORK 5-12

III DATA ANALYSIS AND INTERPRETATION 14-21

FINDINGS , SUGGESTIONS AND

IV 23-25
CONCLUSION

BIBLIOGRAPHY
 LIST OF TABLES

Table No. Title Page No

NEFT(NATIONAL ELECTRONICS FUNDS TRANSFER)

1.1 14
CHARGE

1.2 15
RTGS (REAL TIME GROSS SETTLEMENT CHARGES)

1.3 16
IMPS (IMMEDIATE PAYMENT SERVICE) CHARGE

1.4 17
NON-MAINTANANCE OF AVERAGE MONTHLY BALANCE

1.5 18
LOCKER RENT CHARGES (URBAN METRO AREA)

1.6 19
DEBIT CARD CHARGES

1.7 20
POSTAL SERVICE CHARGE

1.8 MISCELLANEOUS CHARGES 21

 LIST OF FIGURE

Figure No. Title Page No

NEFT(NATIONAL ELECTRONICS FUNDS

1.1 14
TRANSFER) CHARGE

1.2 15
RTGS (REAL TIME GROSS SETTLEMENT
CHARGES)

1.3 16
IMPS (IMMEDIATE PAYMENT SERVICE) CHARGE

1.4 NON-MAINTANANCE OF AVERAGE MONTHLY 17

BALANCE

1.5 18
LOCKER RENT CHARGES (URBAN METRO AREA)

1.6 19
DEBIT CARD CHARGES

1.7 20
POSTAL SERVICE CHARGES

1.8 21
MISCELLENEOUS CHARGES
 CHAPTER 1

INDRODUCTION
1.1 INTRODUCTION

Bank play important role for the economic development of the country. At present banking
sector is very competitive in providing various services to its customers. The various services
can be utilized by the customers, only when they are aware about these services and charges.
The banker has to know the needs of the customers and the customers has to know the various
services and charges offered by banks.

For the proper development of a country’s banking system, there should be a proper
relationship between he banker and customer. Where there is no customers, a bank can’t work
properly. It is there for pertinent to carry out a research on “BANK CHARGES OF SBI AND
OTHER BANKS IN CHERUPUZHA PANJAYATH”, because knowledge of this will help
an organization know how to deal rightly with their customers and customers to know about
some important bank charges and interest rate charged by banks.

The main aim of an organization is to identify the needs and wants of the customers and
satisfaction of customers. Retail banks use customer satisfaction as a tool to measure the
quality and management of customer relationship with customers. If customers are not
satisfied that may leads to main defect of an organization, if they are satisfied that will help
the organization to achieve its future goals. However when customers are satisfied it make
them happy, excited and fulfilled.

A customer feel angry, when he is not understood why some amounts are deducted from
account. Case like this may feel dissatisfaction by the customers and that may leads to
switching other banks. So that’s why this study meant to discover how bank charges affected
the customers and providing awareness to customers about bank charges and interest rate of
SBI and other banks.

1
1.2 STATEMENT OF THE PROBLEM
It is very true that customers in Cherupuzha Panjayath are switching from one bank to
another seeking for a bank with lower bank charges. Most of the Customers are unsatisfied
with the bank charges charged by banks. They are unknowingly accept the terms and
conditions of the banks like credit, debit and ATM alert charges. In addition, customers are
not well enlightened about the services of the banks. The main reason for non-disclosure of
deduction from accounts by banks are, if the customers will go and complain to friends and
families about the charges, that may leads to switching of bank. In this context a study is made
which is entitles as “A comparative study of bank charges of SBI and other banks with a
special reference to cherupuzha panjayath.
1.3 SIGNIFICANCE OF THE STUDY
This study is meant to educate the public, the bank charges and bank rate of SBI and other
banks in cherupuzha panjayath and informe the banking sector that the increasing bank charges
will reduce the patronage of customers.

1.4 SCOPE OF THE STUDY

The study is restricted to bank charges and interest rates of SBI and other banks in
cherupuzha area.

1.5 OBJECTIVE OF THE STUDY

• To compare different charges and rates of different banks.

• To find out which bank is providing better bank charges.
• To suggest suitable measures for improvement.
1.6 METHODOLOGY

The present study “A comparative study of bank charges of SBI and other banks with a special
reference to cherupuzha panjayathu” has been designed as an analytical one based on primary data.

2
1.7 SOURCE OF DATA

1.PRIMARY DATA

• Observation

2.SECONDARY DATA

• Website

1.10 LIMITATIONS OF THE STUDY

▪ Unwillingness to provide adequate information from banks.

▪ Generalization is not possible.
▪ Financial constraint of the researcher in sourcing for relevant materials or information.
1.11 CHAPTER SCHEME

❖ First chapter deals with introduction and design scheme

❖ Second chapter deals with theoretical framework
❖ Third chapter is deals with analysis and interpretation
❖ Last chapter deals with suggestions and conclusions

3
 CHAPTER 2

THEORETICAL FRAMEWORK

4
2.1 INTRODUCTION OF BANKING SECTOR
Banks are important part of a country. Development of a country mainly depends upon the
banking system. Banks are the backbone of modern business. A bank is a financial institution
which accept deposits and lend money to the public.it receives money from those who want to
save in the form of deposits and lend money those who need it.

2.2 DEFINITION OF BANK

Banking Regulation Act 1949 section 5(1) (b) defines banking as “accepting for the purpose
of lending or investment, of deposits of money from the public, repayable on demand or otherwise
and withdrawable by cheque, draft, order or otherwise”

2.3 FUNCTIONS AND OBJECTIVES OF BANKING

The main objective and function of bank is to accept deposit from public and lending money to
others.

▪ Dealing in foreign exchange

▪ Deals in hundies
▪ Factoring services
▪ Provide custody services
▪ Provide long term loans
▪ Discounting of bills
▪ Promotional services

5
2.4 STATE BANK OF INDIA
The State Bank of India (SBI) is an Indian multinational, public sector banking
and financial services statutory body. It is a government corporation statutory body headquartered
in Mumbai, Maharashtra. SBI is the 48rd largest bank in the world and ranked as 221th in the list
of the world's biggest corporations of 2020. It is the largest bank in India with a 23% market share
in assets, besides a share of one-fourth of the total loan and deposits market.

The bank descends from the Bank of Calcutta, founded in 1806, via the Imperial Bank
of India, making it the oldest commercial bank in the Indian subcontinent . The Bank of
Madras merged into the other two "presidency banks" in British India, the Bank of Calcutta and
the Bank of Bombay, to form the Imperial Bank of India, which in turn became the State Bank of
India in 1955. The Government of India took control of the Imperial Bank of India in 1955,
with Reserve Bank of India (India's central bank) taking a 60% stake, renaming it the State Bank
of India.

The roots of the State Bank of India lie in the first decade of the 19th century when the Bank
of Calcutta later renamed the Bank of Bengal, was established on 2 June 1806. The Bank of Bengal
was one of three Presidency banks, the other two being the Bank of Bombay (incorporated on 15
April 1840) and the Bank of Madras (incorporated on 1 July 1843). All three Presidency banks
were incorporated as joint stock companies and were the result of royal charters. These three banks
received the exclusive right to issue paper currency till 1861 when, with the Paper Currency Act,
the right was taken over by the Government of India. The Presidency banks amalgamated on 27
January 1921, and the re-organized banking entity took as its name Imperial Bank of India. The
Imperial Bank of India remained a joint stock company but without Government participation.

Pursuant to the provisions of the State Bank of India Act of 1955, the Reserve Bank of India, which
is India's central bank, acquired a controlling interest in the Imperial Bank of India. On 1 July
1955, the Imperial Bank of India became the State Bank of India. In 2008, the Government of

6
India acquired the Reserve Bank of India's stake in SBI so as to remove any conflict of interest
because the RBI is the country's banking regulatory authority.

In 1959, the government passed the State Bank of India (Subsidiary Banks) Act. This made
eight banks that had belonged to princely states into subsidiaries of SBI. This was at the time of
the first Five Year Plan, which prioritized the development of rural India. The government
integrated these banks into the State Bank of India system to expand its rural outreach. In 1963
SBI merged State Bank of Jaipur (est. 1943) and State Bank of Bikaner (est.1944)

2.5 FEDERAL BANK

Federal Bank is a Private Sector, scheduled commercial bank in India, headquartered

in Aluva, Kochi. The Bank also has its Representative Offices abroad at Abu Dhabi and Dubai.
With a customer base of 8 million, including 1.2 million NRI customers and a large network of
remittance partners across the world, Federal Bank claims to handle more than 15% of India's
inward remittances. The Bank has remittance arrangements with more than 110 Banks/Exchange
Companies across the world. The Bank is also listed in the BSE, NSE and London Stock
Exchange and has a branch in India's first International Financial Services Centre (IFSC) at GIFT
City in Gujarat.

The bank name was named Federal Bank Limited on 2 December 1949, after completing the
formalities of Banking Regulation Act, 1949.. The Bank operates in four segments: treasury
operations wholesale banking retail banking and other banking operations. Treasury operations
include investment and trading in securities shares and debentures. The Bank's products and
services include working capital term finance trade finance specialized corporate finance products
structured finance foreign exchange syndication services and electronic banking requirements. The
bank has 1250 branches and 1520 ATMs. The bank also has its Representative Offices at Abu
Dhabi and Dubai and an IFSC Banking Unit (IBU) in Gujarat International Finance Tec-City
(GIFT City)

The Bank offer its customers a variety of services such as Internet banking Mobile banking
on-line bill payment online fee collection depository services Cash Management Services

7
merchant banking services insurance mutual fund products and many more as part of its strategy
to position itself as a financial super market and to enhance customer convenience .Federal Bank
Ltd was incorporated on April 28 1931 with the name Travancore Federal Bank Ltd. The company
was established with an authorized capital of rupees five thousand at Nedumpuram a place near
Tiruvalla in Central Travancore under the Travancore Company's Act. The Bank was founded by
K.P.Hormis. They started business of auction -chitty and other banking transactions connected
with agriculture and industry. In May 18 1945 the registered office of the Bank was shifted to
Aluva. They opened their first branch at Aluva and commenced operations. On 8 November 2017
Federal Bank announced that the Reserve Bank of India has given its approval to the bank for
opening representative offices at Kuwait and Singapore. With the opening of these offices the bank
will be able to widen its services to NRI diaspora and also enhance the international visibility of
the bank.
2.6 CANARA BANK
A good bank is not only the financial heart of the community, but also one with an obligation of
helping in every possible manner to improve the economic conditions of the common people
Our Beloved Founder
Late Sri Ammembal Subbarao Pair Founded as 'Canara Bank Hindu Permanent Fund' in
1906, by late Shri Ammembal Subba Rao Pai, a philanthropist, this small seed blossomed into a
limited company as 'Canara Bank Ltd.' in 1910 and became Canara Bank in 1969 after
nationalization.
Widely known for customer centricity, Canara Bank was founded by Shri Ammembal
Subba Rao Pai, a great visionary and philanthropist, in July 1906, at Mangalore, then a small port
town in Karnataka. The Bank has gone through the various phases of its growth trajectory over
hundred years of its existence. Growth of Canara Bank was phenomenal, especially after
nationalization in the year 1969, attaining the status of a national level player in terms of
geographical reach and clientele segments. Eighties was characterized by business diversification
for the Bank. In June 2006, the Bank completed a century of operation in the Indian banking
industry. The eventful journey of the Bank has been characterized by several memorable
milestones. Today, Canara Bank occupies a premier position in the comity of Indian banks. Canara
Bank has several firsts to its credit.

8
A MERGERS
As time progressed, twenty banks merged with the Canara Industrial and Banking
Syndicate Limited including the Maharashtra Apex Bank Limited and Southern India Apex Bank
Limited. The name of the bank was changed to Syndicate Bank Limited in 1964 and the head
office of the bank was shifted to Manipal. The bank expanded its operations not only on the
domestic front but also overseas. It has a branch in London and the bank manages National
Exchange Co. in Doha and Musandam Exchange Co. in Muscat. By 1978, it opened its 1000th
branch at Hauz Khas, Delhi. Currently it has over 4000 branches and all branches are offering
corebanking-e-banking services under anywhere-anytime-anyhow banking. Syndicate Bank has
one branch in London, United Kingdom.

On 30 August 2019, Finance Minister Nirmala Sitharaman announced that Syndicate Bank
would be merged with Canara Bank. The proposed merger would create the fourth largest public
sector bank in the country with assets of 15.20 lakh crore (US$210 billion) and 10,324
branches. The Board of Directors of Canara Bank approved the merger on 13 September 2019.
Syndicate Bank sponsored the first regional rural bank in India by name Prathama Bank,
in Moradabad district Uttar Pradesh on 2 October 1975. The stocks of the Syndicate Bank are
listed on Bombay Stock Exchange, National Stock Exchange, Mangalore Stock Exchange and
Bangalore Stock Exchange. Syndicate Bank made a partnership with UNEP to initiate a
successful solar loan programme. It is a four-year $75855.6 million effort, launched in April 2003
to help accelerate the market for financing solar home systems in southern India.

9
2.7 KERALA GRAMIN BANK

Kerala Gramin Bank (KGB) is a regional rural bank (RRB) formed on 08.07.2013.under the
sub-sec (1) of sec 3 of the RRB Act 1976 (27 of 1976).The bank was formed by amalgamating the
two RRBs of kerala namely South Malabar Gramin Bank and North Malabar Gramin Bank through
a notification by the government of india.

Kerala Gramin Bank is a Regional Rural Bank in kerala with massive rural presentation. Even
though the bank is a Regional Rural Bank.KGB delivers all the major functionalities of PSB. The
major focus of the bank is to initiate appropriate intervention for overall economic upliftment and
advancement of the people of Kerala by giving financial assistance to the sectors like Agriculture,
Micro, Small and medium Enterprises education, housing, micro-credit weaker sections, SC/ST
communities…

KGB has carved a niche for itself through its 40 year old history of dedicated and customized
services to the clientele by its predecessor RRBs with 634 branches as on 2020. It is the second
largest bank in kerala in terms of branch network. its comprehensive branch network spreads into
the deepest and farthest corners of kerala. Further, its CD ratio is the highest among major banks
of kerala. KGB leads other banks in the state in the number of persons assisted under Kisan Credit
Card (KCC) and SME (Prioritly) schemes.

For the past 40 years the predecessor RRBs of the bank have succeeded in building warm
relationship with its customers. KGB’s objective is to intensify this relationship and thus emerge
as a strong, vibrant, and socially committed Kerala’s own bank. Now KGB has 630+ branches
10500+ networked ATMs 3500+ employees.

2.8 SOUTH INDIAN BANK

The south indian bank was incorporated on 29 January 1929 Thrissur as a private limited
company and wad later converted into public limited company on 11 August 1939. SIB was set up
by a group of enterprising men who joined together at Thrissur to provide the people a safe efficient
and service oriented dsssepository of savings of the community on one hand and to free the

10
business community from the clutches of greedy money lenders on the other by providing need
based credit at reasonable rate of interest.

As on 31st December 2020 the bank had a network of 877 branches and 1443 ATM across the
country. The bank opened 7 new outlets and 37 ATMs across the country during the financial year
2019-2020. During the financial year 2020 the bank bagged the best MSME bank (private sector)
award by ASSOCHSM in connection with 7th MSME National Excellence Award 2019. Corporate
Social responsibility (CSR) Excellence award 2019 institute by Rotary District 3201 for carrying
out CSR project in the area of education for underprivileged. Also received 6 awards.

2.9 DEFINITION OF BANK CHARGES TAKEN FOR THE STUDY

• RTGS(REAL TIME GROSS SETTLEMENT CHARGES)

This is a system that is generally used for large value interbank funds transfers. These
often require immediate and complete clearing and are usually organized by a country’s central
bank. RTGS can often incur a higher charge than processes that bundle and net payments. Once
completed, real time gross settlement payments are final and irrevocable.

• NEFT(NATIONAL ELECTRONIC FUNDS TRANSFER)

This is a nation-wide payment system facilitating one to one funds transfer. Under this
scheme, individuals can electronically transfer fun from any bank branch to any individual
having an account with any other bank branch in the country participating in the scheme.

• IMPS(IMMEDIATE PAYMENT SERVICE)

This is an instant payment inter- bank electronic funds transfer system in India.
IMPS offers an inter-bank electronic fund transfer service through mobile phones.

11
• AVERAGE MONTHLY BALANCE CHARGES
Monthly Average Balance is the sum of all the end of day (EOD) closing balance
divided by the number of days in that month. Most of the leading banks in the country
charges customers for non-maintenance of monthly average balance in their savings
accounts.

• LOCKER CHARGES
The locker facility is also called as safe custody. The relationship of the bank and
the locker holder is that of a lessor and lessee, or in simple words that of an owner and a
tenant. Each customers is charged an annual fee foe holding the locker with the bank.

• POSTAL CHARGES
These are the charges levied on customers for postal services by bank.
• MISCELLANEOUS CHARGES
These are the expense may refer to a general ledger account in which small,
infrequent transactions amounts are recorded. It is better to record such charges in a
separate account such as bank service charges instead of recording them in miscellaneous
expenses.

• DEBIT CARD CHARGES

Bank charges a sum for extending service like re-issuance of debit cards, re- generation
of pin and maintenance charges .GST is levied on the replacement of lost stolen card, physical
pin generation and annual maintenances.

12
 CHAPTER 3

ANALYSIS AND INTERPRETATION

13
 TABLE NO 1.1

NEFT (NATIONAL ELECTRONICS FUNDS TRANSFER) CHARGE

OTHER BANKS IN CHERUPUZHA
NEFT SLAB SBI CANARA SOUTH FEDERAL KERALA
BANK INDIAN BANK GRAMIN
RATE
BANK BANK
Up To 10000 1 NILL 1.25 2 2.25
10000 – 1LAKHS 2 5 2.50 4 4.50
1 LAKHS-2 LAKHS 3 18 7.50 14 14.50
Above 2 LAKHS 5 29 12.50 20 24.50

FIGURE: 1.1

NEFT (NATIONAL ELECTRONICS FUNDS TRANSFER)

35
CHARGE
29
30
24.5
25
20
20 18
14 14.5
15 12.5
10 7.5
5 5 4 4.5
3
5 1 2
0 1.25 2.5 2 2.25
0
SBI CANARA BANK SOUTH INDIAN BANK FEDERAL BANK KERALA GRAMIN
BANK
Up To 10000 10000-1 LAKH 1 LAKH - 2 LAKH Above 2 LAKH

INTERPRETATION

Table no 1.1 shows that the State Bank of India Charges low rate of amount ranges from (1-5)
on NEFT as compared with other bank.

14
 TABLE NO 1.2

RTGS (REAL TIME GROSS SETTLEMENT CHARGES)

OTHER BANKS IN CHERUPUZHA
RTGS SLAB SBI CANARA SOUTH FEDERAL KERALA
BANK INDIAN BANK GRAMIN
RATE
BANK BANK

2 – 5 LAKHS 5 30 12.50 20 24.50

Above 5 LAKH 10 50 25 45 49.50

FIGURE 1.2

RTGS (REAL TIME GROSS SETTLEMENT) CHARGES

60
50 49.5
50 45

40
30
30 25 24.5
20
20 12.5
10
10 5

0
SBI CANARA BANK SOUTH INDIAN BANK FEDERAL BANK KERALA GRAMIN
BANK
2 -5 LAKH ABOVE 5 LAKH

INTERPRETATION
From the above table No 1.2 shows that canara bank which charges ranges from RS 30-50
which is high rate when compared with other bank. Only RS 5 is charged by SBI for RTGS service.

15
 TABLE NO 1.3
IMPS (IMMEDIATE PAYMENT SERVICE) CHARGE

OTHER BANKS IN CHERUPUZHA

IMPS SLAB SBI CANARA SOUTH FEDERAL KERALA
BANK INDIAN BANK GRAMIN
RATE
BANK BANK

Up To 1000 NILL NILL NILL NILL NILL

1001 -1 LAKH 5 10 5 5 20
100001 - 2 LAKH 15 18 15 10 25

FIGURE 1.3

IMPS (IMMEDIATE PAYMENT SERVICE) CHARGES

30 25
25 20
20 18
15 15
15 10 10
10 5 5 5
5 0 0 0 0 0
0
SBI CANARA BANK SOUTH INDIAN BANK FEDERAL BANK KERALA GRAMIN BANK

Up TO 1000 1001 - 1 LAKH 100001 - 2 LAKH

INTERPRETATION
Table no 1.3 shows that IMPS rate og Kerala Gramin Bank is grater than other banks which is
amounted to RS. 25. Others providing charges rate from 5 – 15.

16
 TABLE NO 1.4
NON-MAINTANANCE OF AVERAGE MONTHLY BALANCE

OTHER BANKS IN CHERUPUZHA

PARTICULARS SBI CANARA SOUTH FEDERAL KERALA
BANK INDIAN BANK GRAMIN
BANK BANK
NON 500 118 200 200 100
MAINTENACE OF
AMB CHARGE

FIGURE 1.4

NON MAINTANACE OF AVERAGE MONTHLY BALANCE

600
500
500

400

300
200 200
200
118 100
100

0
SBI CANARA BANK SOUTH INDIAN BANK FEDERAL BANK KERALA GRAMIN BANK
NON MAINTANANCE OF AMB

INTERPRETATION
Above Table No.1.4 shows that SBI bank charges RS 500 which is high rate for non-maintenance
of AMB except South Indian Bank and Federal bank (RS 200).

17
 TABLE NO 1.5
LOCKER RENT CHARGES (URBAN & MATRO AREA)

OTHER BANKS IN CHERUPUZHA

PARTICULARS SIZE SBI CANARA SOUTH FEDERAL KERALA
BANK INDIAN BANK GRAMIN
BANK BANK
SMALL 1500 1500 1600 2250 2000
URBAN MEDIUM 3000 3500 4500 3250 4000
LARGE 6000 10500 9500 6500 8000

FIGURE 1.5

LOCK ER RENT CHARGES (URBAN&M ATRO AREA)

10500

SMALL MEDIUM LARGE

9500

8000
6500
6000

4500

4000
3500

3250
3000

2250

2000
1600
1500

1500

SBI CANARA BANK SOUTH INDIAN BANK FEDERAL BANK KERALA GRAMIN
BANK

INTERPRETATION
From the table no 1.5 shows that SBI bank charges high rate of amount ranges from RS 1500 –
10500 for locker rent as compared with other banks.

18
 TABLE 1.6
DEBIT CARD CHARGES
OTHER BANKS IN CHERUPUZHA
PARTICULARS SBI CANARA SOUTH FEDERAL KERALA
BANK INDIAN BANK GRAMIN
BANK BANK
DEBIT CARD 300 118 250 200 150
REPLACEMENT

DUPLICATE PIN 50 120 100 50 50

OR GENERATION
OF PIN

FIGURE.1.6

DEB IT CARD CHARGES

DEBIT CARD REPLACEMENT DUPLICATE PIN OR GENERATION OF PIN
300

250

200

150
120
118

100
50

50

50

SBI CANARA BANK SOUTHI INDIAN FEDERAL BANK KERALA GRAMIN

BANK BANK

INTERPRETATION
From the table 1.6 shows that for replacing debit card SBI charges high amount ie, RS 300.
But for generation of pin or duplicate pin canara charges RS 120, south indian bank charges RS
100 while other banks charges RS 50.

19
 TABLE 1.7
POSTAL SERVICE CHARGES
OTHER BANKS IN CHERUPUZHA
PARTICULARS SBI CANARA SOUTH FEDERAL KERALA
BANK INDIAN BANK GRAMIN
BANK BANK
20 15 10 25 20
ORDINARY POST
50 50 25 50 50
REGISTERED POST

FIGURE 1.7

POSTAL SERVICE CHARGES

60
50 50 50 50
50

40

30 25 25
20 20
20 15
10
10

0
SBI CANARA BANK SOUTH INDIAN BANK FEDERAL BANK KERALA GRAMIN BANK

ORDINARY POST REGISTERED POST

INTERPRETATION
Table no 1.7 shows that every bank charges equal amount of money for registered post.

20
 TABLE NO 1.8
MISCELLANEOUS CHARGES
OTHER BANKS IN CHERUPUZHA
PARTICULARS SBI CANARA SOUTH FEDERAL KERALA
BANK INDIAN BANK GRAMIN
BANK BANK
OLD RECORD 200 200 200 100 100
ENQUIRY
ISSUE OF BALANCE 150 100 100 100 100
CERTIFICATE

ISSUE OF INTEREST 150 100 100 100 100

CERTIFICATE
PHOTO/SIGNATURE/ 150 150 100 100 100
DOCUMENT
ATTESTATION

FIGURE 1.8

MISCELLANEOUS CHARGES
300
200 200 200
200 150 150 150 150
100 100 100 100 100 100 100 100 100 100 100 100 100
100
0
SBI CANARA BANK SOUTH INDIAN BANK FEDERAL BANK KERALA GRAMIN
BANK

OLD RECORD ENQUIRY ISSUE OF BALANCE CERTIFICATE

ISSUE OF INTEREST CERTIFICATE PHOTO/SIGNATURE/DOCUMENT ATTESTATION

INTERPRETATION
Above table no 1.8 shows that the SBI, canara , south indian bank charges high rate of
amounts RS ( 150 -200) for miscellaneous charges as compared with other bank. Other banks
maintain a uniform amount for miscellaneous charges.

21
 CHAPTER 4
FINDINGS, SUGGESSIONS AND CONCLUSIONS

22
4.1 FINDINGS
1) National electronic fund transfer charges are low in the case of SBI which charges RS
1-5 for different slabs, at the same time canara bank does not charge no amount up to
10000.
2) Canara bank which charges highest amount for real time gross settlement charges, it
starts with RS 30 and ends with RS 50.
3) For the immediate payment service the Kerala gramin bank which charges highest
amount of RS 25, while other charges within the limit of RS 15.
4) SBI which charges high rate of amount for non-maintenance of average monthly
balance is RS 500.Other banks charge a uniform price.
5) Locker rent charges are very low(RS 1500-6000) in the case of SBI, at the same time
canara bank which charges high rate of charge which ranges from RS 1500-10500 for
different sizes.
6) For replacing debit card SBI charges RS 300 and others collect amount ranging from RS
150-250 except canara which collects RS 118. For generating pin/duplicate pin canara bank
collects RS 120 and others collect RS 50-100.
7) Postal charges are greater for federal bank when comparing with other banks. For ordinary
post other bank collects amount ranges from RS 10-20, federal bank collects RS 25. For
registered post SBI, canara, federal, KGB charges RS 50 and othes charges RS 20, 25.
8) While comparing miscellaneous charges SBI collects amount which is more than other
banks charges. Example; for issue of balance certificate/interest certificates other bank
collects RS 100 but at the same time SBI collects RS 150.

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4.2 SUGGESSIONS

1. Banks should educate its customers about bank charges and interest rates.
2. SBI bank should reduce its charges on miscellaneous services while comparing with other
commercial banks.
3. To improve more satisfaction, the banks should adopt appropriate marketing strategy like
encourage the business establishment in the area for wider acceptability.
4. It is suggested that the bankers should avoid sudden changes in interest rates, late fee and
wrong billing problems of their customers for satisfaction.
5. The banks should reasonably reduce their interest, financial charges and penalty which
will reduce the customer dissatisfaction.
6. It is surprising that majority of customers are ignorant about the basic information on the
card usage, the interest rates charged on outstanding balance and they paid interest higher
than what they believed. This should be rectified by giving awareness programs to
customers.
7. The banks should provide fair and reasonable rate of interest and charges for banking
services.
8. It is suggested that the bankers should avoid sudden changes in interest rates, late fee and
wrong billing problems of their customers for satisfaction.

4.3 CONCLUSION
Here a comparative study is conducted on bank charges of SBI and other banks in Cherupuzha
Panjayath. From the study it was founded that the rates and penalties charged by SBI and other
commercial banks are different. But the problem is that customers are not aware about these
charges, that’s why they have to pay the charges which is higher than what they believed.
Sometimes the charges may discourage the customers from savings in the bank. So the prime duty
of bankers is to educate its customers about bank charges and rates.

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A change is needed today in the banking sector which is built confidence in human capital-the
most important of all resources in commitment, creativity and innovation brought about proactive
management, membership and employees.

In this way, by keeping in mind the certain short comings, appropriate measures to overcome them
should be adopted .So that the real purpose of the banks must be realized with a competitive
advantages and the gap between the customers preference on SBI and other commercial banks can
be reduced.

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 BIBLIOGRAPHY

WEBSITES

www.google.com

www.canara bank.com

www.wikkipiedia.com

www.kgb.com

www.sib.com

www.federalbank.com

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